Chip crisis paralyzes BMW plant

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German car company BMW announced on Sunday that production at its factory in Regensburg would be halted due to a shortage of components containing electronic chips.

A company spokeswoman said; In response to a question on this subject, it was decided to stop production at the factory for a week, starting today, Monday. The spokeswoman added that “it was planned, in any case, to take a week off after that week”; This means that production will be resumed at the factory on August 9th.

The newspaper “Automobile Fühe”, which specializes in the field of cars, reported on the suspension of production at the BMW plant.

It is noteworthy that the shortage of semiconductors affects the entire auto industry in a way that has to stop production movement frequently in the factories of different car companies.

Car sales in Europe fell during the first half of this year by two million cars, compared to the same period two years ago, at a time when the auto industry in the continent is recovering at lower rates than those in the United States and China.

The European Automobile Industry Association stated that the rate of car registrations rose by 13 percent in June compared to the same month last year, bringing the total number of cars registered during the first six months of the year to 6.49 million.

Although this percentage exceeds the rates recorded during the first half of last year by 27 percent, it remains below the usual rates of sales during the pre-Corona period.

The slow pace of vaccinations and the continued precautionary measures to control the “Corona” epidemic, cast a shadow on car sales earlier this year, and the shortage of semiconductors worldwide had an impact on the production of major global car companies.

Executives at Volkswagen and BMW believe that the shortage of semiconductors, a key component in the auto industry, will continue to affect production in the coming years.

And a report by the “LMC” Foundation for Marketing Research in the field of cars stated, “It is expected that car sales will recover during the second half of the year, in light of the continued easing of (Corona) restrictions and the improvement of economic conditions.” The report added that “there are risks on the horizon, as the shortage in supplies of semiconductors threatens to impede the recovery of demand in the post-closure phase.”








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